One of the worst performers on the Australian share market on Tuesday has been the Actinogen Medical Ltd (ASX: ACW) share price.
In morning trade the Alzheimer's-focused drug development company's shares are down 67% to 1.6 cents.
Why has the Actinogen Medical share price crashed lower today?
Investors have been hitting the sell button this morning after Actinogen Medical released the results of its XanADu phase II clinical trial of 10mg Xanamem in patients with mild dementia due to Alzheimer's disease.
According to the release, the XanADu trial established that a 10mg daily dose of Xanamem is safe and has the ability to effectively inhibit cortisol production, as demonstrated by the expected increase in related hormones, including adrenocorticotropic hormone (ACTH).
However, it did not demonstrate adequate efficacy in improving cognition in mild Alzheimer's disease. Disappointingly, the primary and secondary endpoint measures did not demonstrate statistical differences between Xanamem 10mg and placebo.
What now?
It isn't necessarily the end of the road just yet. Management advised that further analysis of the trial data is underway in the hope of exploring trends that could identify any specific cognitive domains in which positive trends may be evident.
It also suggested that higher doses of Xanamem and longer treatment durations may be necessary to effectively demonstrate its potential to improve cognition in Alzheimer's disease.
Studies using 20mg and 30mg doses are underway and results are expected to be announced by the end of June. After which, management will use the data to refine Xanamem's ongoing clinical development program.
Despite the disappointing results, the company's CEO, Dr Bill Ketelbey, was encouraged by the trial.
He said: "These XanADu results are certainly encouraging. While 10mg Xanamem was not shown to be a clinically effective dose in Alzheimer's disease, the safety and pharmacodynamic effects observed show potential that higher doses and a longer treatment duration of Xanamem may be efficacious."
Also in the news today in the pharmaceutical industry is Mayne Pharma Group Ltd (ASX: MYX). The Mayne Pharma share price has dropped 1% lower after analysts at UBS held firm with their neutral rating but cut the price target on its shares to 73 cents after revising down margins for its generics segment.
Elsewhere, the CSL Limited (ASX: CSL) share price has pushed 1% higher despite there being no news out of the biotech giant.
